It seems that Ethereum staking on Coinbase is making its customers and investors hesitant. Since the SEC filed a lawsuit against the company, there has been a rise in withdrawal requests. The regulator claims that staking services, among other things, breach securities laws.
Coinbase Staking Redemptions Surge
Since the SEC’s enforcement action on June 6, 35,810 cbETH has been redeemed, according to Dune Analytics. The value of these redemptions is around $65.7 million and exceeds outflows from other staking providers like Lido. On June 6, Coinbase witnessed the second largest single-day redemption amount in its history, with 27,280 cbETH redeemed. “Coinbase is currently the second-largest label entity for ETH liquidity staking,” said industry analyst Colin Wu. Despite the SEC lawsuit, Coinbase CEO Brian Armstrong has stated that the company will not wind down its staking service.
Coinbase staking makes up around 3% of overall net revenue, with a higher-than-average commission of 25% on staked ETH compared to Lido’s 10% commission. According to Nansen, Ethereum staking deposits continue to exceed withdrawals, but over 70% of the ETH waiting for withdrawal is from Coinbase. Additionally, Coinbase accounts for 19.6% of all ETH principal withdrawals to date, with 95,478 ETH currently in the withdrawal queue.
The dashboard reports that a total of 22.6 million ETH is staked, valued at around $41.6 billion. However, Ultrasound Money figures claim a total of 19.4 million ETH staked. Following the SEC lawsuit, Coinbase’s stock (COIN) prices have dropped by 10%.
ETH Price Outlook
Despite the recent regulatory crackdown in the United States, Ethereum prices have not been significantly affected. At the time of writing, ETH was trading down 2% on the day at $1,840. While it experienced a significant dip on June 6, it managed to hold support at the $1,800 level and remained within its range-bound channel for over two months.
